Rookie wrote:Just doing a little checking and it looks like if you go iver the apron, ir 4M iver the tax threshold, the penalties get very severe and there aren't just monetary penalties but also penalties that effect ability to sign players.

Its funny that this happens a few days after we made the lopsided Camby trade. Many thought it was favor by favor, but it looks like the Rockets simply want to screw us up no matter what.

Last week, it was reported that the Rockets and Lin had agreed on an offer sheet totaling approximately $19 million guaranteed over three seasons, with a team option on the fourth and final season.

The deal was increased to $25 million total over three years, with the final season now nearly $15 million. That final season could cost the Knicks as much as $45 million in luxury tax payments. It is unclear if a team option still exists for a fourth season.

Some believe Houston is now desperate for a point guard after Goran Dragic and Kyle Lowry left the Rockets this summer. But general manager Daryl Morey could still expect the Knicks to match, and he may be more concerned with driving down Lin's value as a future trade chip in New York's arsenal.

Chris Paul is eligible to hit the free-agent market next summer and a package centered around Lin, under more reasonable contract terms, could have enticed the Clippers to trade the All-Star point guard to New York. Inflating Lin's contract terms will make him less attractive to the cost-conscious Donald Sterling, keeping Paul on the path to free agency and in play for Houston as it seeks to remake its roster.

These maneuverings may set up the Rockets' longer-term strategy of acquiring Dwight Howard and keeping the All-Star center in Houston by pairing him with an elite play-maker like Paul.

The Knicks will have three days to match the deal or lose Lin to Houston. New York clearly intended to match under the offer-sheet terms originally reported.

Via Howard Beck/Twitter (New York Times)

Read more: http://basketball.realgm.com/wiretap/222306/Rockets_Sign_Lin_To_Larger_Offer_Sheet#ixzz20XiBo7LP

In addition to the tax payments described in question number 21, taxpaying teams have the following restrictions. Note that most of these restrictions aren't triggered unless the team would be over the "apron" -- the point $4 million above the tax level -- following a signing or trade.

Teams above the apron cannot use the Bi-Annual exception (see question number 25).

Teams above the apron have a smaller Mid-Level exception (see question number 25). Teams above the apron can offer contracts no longer than three years, while other teams can offer four. The starting salary is also lower (for example, in 2011-12 it is $3 million for teams above the apron, versus $5 million for other teams).

Taxpaying teams can acquire less salary in a simultaneous trade (see question number 81).

Starting in 2013-14, teams above the apron cannot receive a player in a sign-and-trade transaction (see question number 88).

Teams above the apron do not have the same protections under the Gilbert Arenas provision (see question number 44). Under the Arenas provision other teams can offer restricted free agents salaries starting at the Non-Taxpayer Mid-Level exception. If a team with the right of first refusal does not have Early Bird rights to the player and is over the apron, it will have only the smaller Taxpayer Mid-Level exception at its disposal, and cannot match an offer for the full Non-Taxpayer Mid-Level exception.

In addition, taxpaying teams do not receive a distribution from the leaguewide tax fund. However, they do receive a distribution from the escrow fund (see question number 22).

Clean wrote:

nixluva wrote:This is not a good thing! That is gonna really hurt in terms of Luxury Tax dollars.

Why does this matter to us? Why does this matter to the Knicks? It only matters to Dolan.

It could matter a lot. There's no guarantee Dolan accepts this.

nixluva wrote:

Clean wrote:

nixluva wrote:This is not a good thing! That is gonna really hurt in terms of Luxury Tax dollars.

Why does this matter to us? Why does this matter to the Knicks? It only matters to Dolan.

It could matter a lot. There's no guarantee Dolan accepts this.

Why would he not accept it? Lin got MSG stocks to be the highest it has ever been. The money made off the stocks and merch alone already paid for Lins contract and the Luxury Tax money it will cause. MSG also made deals with Chinese Advertisers because of Lin also.

Kyle Lowry left the Rockets this summer

"Left," "shipped out to the wastelands of Canada for a draft pick," same difference.

holfresh wrote:I'll let them choke on that contract..These things never work out..Riley did the same for Juwan Howard...he was the cat's meow too...Offered him insane money at the time, Washington matched it he never live up to it...Lin would have been nice to watch grow into a player with Shump, but it isn't worth it...He is no lock to be a stud...Time to move on...

you ok going with kidd/pablo p instead?

JamesLin wrote:

crzymdups wrote:

Marc Berman ‏@NYPost_Berman

NBA source says the vigil is over. Jeremy Lin has signed Rockets offer sheet in Vegas. Told part of delay was his ESPYs appearance.

5m David Aldridge David Aldridge ‏@daldridgetnt

Source says that Jeremy Lin has officially signed three-year, $25.1M offer sheet with the Rockets. Knicks will have three days to match.

David Aldridge ‏@daldridgetnt

Lin will get $5M in year one, $5.225M in year two and $14.898M in year three. Rockets hoped that will discourage NY, but Knicks will match.

Morey/Houston made Lin a max offer in Year 3.

sigh. Knicks will still match, but Morey is a freaking idiot.

he really needs to be fired if Houston doesn't get Dwight.

He has run a seminar in being a horrible GM this summer so far: giving away Scola for nothing. Letting Dragic walk for nothing. Lotto pick for Lowry is a decent move... maybe. The Marcus Camby trade seemed like a useless move for them especially since they waived Jorts.

Morey is all in for Dwight, if he doesn't get D12, he should be fired IMHO.

This sounds like an owner I know... someone flew to Denver for one guy and traded everything...

"everything"? you mean currently un-signed FA point guard ray felton who was laughed out of portland for being out of shape? you mean enigma mozgov? you mean wilson chandler?

wilson and gallo are nice pieces... melo is starting in the olympics.

sidsanders wrote:

holfresh wrote:I'll let them choke on that contract..These things never work out..Riley did the same for Juwan Howard...he was the cat's meow too...Offered him insane money at the time, Washington matched it he never live up to it...Lin would have been nice to watch grow into a player with Shump, but it isn't worth it...He is no lock to be a stud...Time to move on...

you ok going with kidd/pablo p instead?

Not really, it's ugly anyway u look at it..But I have to think flexibility going forward is important...